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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: UncleBigs who wrote (63701)6/14/2006 3:26:49 PM
From: Mike Johnston  Read Replies (2) of 110194
 
My take on it is that the housing industry, realtors, home builders etc are pleading for the Fed to stop the hikes.
And i think the Fed wants to stop, but they need the excuse.
Hawkish rhetoric deflated the metals and gave dollar a lift. With 10-15% correction in the stock market they would have another excuse to pause.

This theory would also explain the absence of flagpole rallies in the stock market (after the pause the market will rally anyway)

In the interest of national security, the housing market needs to be given some breathing room, even if it means temporarily allowing stocks to go down.
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